Poor chances of RBI rate cut, weak global cues hit equities (Roundup)

Mumbai, Nov 14 (IANS) Extending losses for a second consecutive session, key Indian equity indices on Tuesday closed in the red, riding on negative cues from Asian markets along with disappointing macro-inflation data points.

According to market observers, investor sentiments were subdued as higher-than-estimated inflation numbers and surge in oil prices dented the chances of a rate cut in the December policy meeting of the Reserve Bank of India.

On a closing basis, the wider Nifty50 of the National Stock Exchange (NSE) dipped by 38.35 points, or 0.38 per cent, to close at 10,186.60 points.

The barometer 30-scrip Sensitive Index (Sensex) of the BSE closed at 32,941.87 points — down 91.69 points or 0.28 per cent — from Monday’s close.

“Markets slid further on Tuesday to close with losses for the second consecutive session. The weakness came on the back of dampening of possibility of the central bank cutting interest rates next month after inflation picked up in October,” Deepak Jasani, Head, Retail Research, HDFC Securities, told IANS.

Official data released on Tuesday showed that India’s annual rate of inflation based on wholesale prices (wholesale price index) rose to 3.59 per cent in October due to an exponential rise in food prices.

In addition, data released on Monday revealed that the consumer price index (CPI) inflation for October rose to 3.58 per cent from 3.28 per cent in September.

Major Sensex gainers on Tuesday were: Hero MotoCorp, up 1.96 per cent at Rs 3,653.65; Bajaj Auto, up 1.71 per cent at Rs 3,266.40; Axis Bank, up 1.57 per cent at Rs 546.25; Mahindra and Mahindra, up 1.34 per cent at Rs 1,429.90; and Reliance Industries, up 1.26 per cent at Rs 886.20.

Major Sensex losers were: Larsen and Toubro, down 2.46 per cent at Rs 1,209.85; Power Grid, down 2.20 per cent at Rs 206.75; Asian Paints, down 1.77 per cent at Rs 1,154.25; Tata Consultancy Services, down 1.53 per cent at Rs 2,716.75; and ONGC, down 1.25 per cent at Rs 182.